Accounting, SCM, CRM, HCM, SRM (as well as all other ERP related data-entry-tasks) involves handling the daily business transactions for a company. This can include very diverse functions ranging from recording inventory stock levels in SCM, opportunity creation in CRM, reporting in HCM, incoming earnings to outgoing payments in financials, etc. In a particular example of financials, some accounting functions include bills or payments sent to vendors. It can also include cash, check, credit card and electronic payments received from customers; and checks written and received by a company. Payroll and tax deductions, along with the reconciling of company books for the year, are all accounting processes.
A financial audit is the verification of financial statements of a legal entity, with a view to express an audit opinion. The audit opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with a financial reporting framework. The purpose of an audit is to enhance the degree of confidence of intended users in financial statements.
Several differences exist between an accounting and an audit. One important difference is that the audit checks the accounting process to determine its validity. Another difference: accounting is a daily process, whereas an audit is usually conducted annually or quarterly.
Whether considered accounting or an audit, for small companies, external experts are typically hired to review financial information. The experts often have an accounting degree and receive financial documents from multiple customers. The volume of documents can become unwieldy and the accountant can become confused which documents belong to which customers. Entering financial information (such as an invoice) into the wrong customer's financial data can be devastating and difficult to detect. The same is true in other business applications.